Economic Situation in Russia

“At present world economy is having hard times,” stated A.Kudrin, Vice-Premier of the Russian Federation, in an interview with the daily “Izvestiya”. “But here is an example: for the last three years USA economy has been decreasing its growth-rates whereas Russian economy has been increasing them. We closely watch the situation on the world financial markets. We see that we have a chance not to concur with the negative progress trends of the world economy leaders. We have both potential and domestic resources in order to contain growth-rates and even increase them”.

“At present world economy is having hard times,” stated A.Kudrin, Vice-Premier of the Russian Federation, in an interview with the daily “Izvestiya”. “But here is an example: for the last three years USA economy has been decreasing its growth-rates whereas Russian economy has been increasing them. We closely watch the situation on the world financial markets. We see that we have a chance not to concur with the negative progress trends of the world economy leaders. We have both potential and domestic resources in order to contain growth-rates and even increase them”.

“A.Kudrin, Vice-Premier of the Russian Federation and Minister of Finance, suggested President Putin that they should return to the pool of commercial banks which will get the control of state corporations’ means as well as spare budget money of the Federal Treasury. V.Putin has adopted the strategy. Ministry of Finance reasoning: since the beginning of the year Russian banks have lost $20 billion due to the capital outflow and it’s high time to save them from crisis liquidity. Still, placement of state corporations’ funds at commercial banks is both acceleration of inflation and a new corruption sphere” (“Gazeta”).

“All Russian uncompleted construction projects should be terminated by 2009,” considers S.Ivanov, First Deputy Chairman of the Government. “All these bridges are grand but even under the tsar they were built quicker and we still use them,” said Ivanov at the Ministry of Transport meeting.

“In Russia they will build roads without fools which, by the way, will cost more than defence maintenance. Such a sensational decision was announced by First Vice-Premier S.Ivanov after he had used one of near Moscow highways. From now on, 4.8% of GDP will be spent on highway engineering” (“Izvestiya”).

“In January the government was going to contain price rise within 8.5%, but now it has to increase the index to 9.5%. It is believed that by 2011 the inflation may decrease to 5.8%. Yet, experts are less optimistic and predict that this year the inflation rate will reach 10-12%” (“RBK-daily”).

“For the last two weeks the prices has gone wild. Prices for bread, milk, sunflower oil, fruit and vegetables have gone up with a leap. For many consumers it was like a warning – time to stock up. Due to the rush demand price of food can come up even more” (“Izvestiya”).

“Trade bill which the Ministry of Economic Development has been drafting for the last two years is accepted by the business community. After six months of working group’s weekly meetings the parties were able to reach an accommodation… The bill makes a provision for such a measure as government regulation of prices for socially significant goods” (“Vremya novostey”).